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About the National Flood Insurance Program

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Flood-Insurance

The National Flood Insurance Program was created in 1968 by the U.S. Congress. The program, which stemmed from the National Flood Insurance Act, helps property owners in qualified flood zones purchase flood protection insurance from the government.

The purpose of the National Flood Insurance Program was to give home and property owners an alternative insurance since the cost repairs and contents had gone up dramatically. Essentially, the program helps victims reduce the structural financial impact of flooding. Coverage ranges from foundation to electrical to plumbing. Contents covered by the program include everything from clothing to furniture.

In order for one to qualify for National Flood Insurance Program, their entire community must all participate. However, at the same time, the community must also have show proper safeguards have been taken in case of a storm or incident where mass flooding can occur. To date, there are 20,600 participating communities.

To date, the National Flood Insurance Program has insured over 5.5 million homes. The National Flood Insurance Program has also paid out over $40 billion dollars in claims.

Under FEMA, the National Flood Insurance Program works with over 80 private insurance companies in order to offer flood protection for property owners and renters. The rates under the National Flood Insurance Program are set nationally and do not differ from each individual and partnered company